Incoterms

[Former Member]

Hi ,

As a SD consultant we use incoterms in Customer master record and in other areas.

please give me brief in this with an example.

I heard that the government will give discounts for the incoterms.

thanks

Devi Reddy

[Former Member · Accepted solution]

Hi ,

A codification of international rules for the interpretation of the commonly used terms in international trade.

An international commercial term (Incoterm) defines the terms of sale and the passing of risks for import and export of merchandise.

Incoterms include the following:

• EXW - Ex Works

• FCA - Free Carriage and Freight

• FAS - Free Alongside Ship

• FOB - Free On Board ship

• CFR - Cost and Freight

• CIF - Cost, Insurance, and Freight

• CPT - Carriage Paid To

• CIP - Carriage and Insurance Paid To

• DAF - Delivered At Frontier

• DES - Delivered Ex Ship

• DEQ - Delivered Ex Quay

• DDU - Delivered Duty Unpaid

• DDP - Delivered Duty Paid

the above are the incoterms where SAP has provided. on this the government will give some consession like insurance.

thanks

Kuntla

[Lakshmipathi]

Dear Devi

I dont think the information what you gathered is correct. To my knowledge, no Government will offer discount neither to seller nor to buyer, based on the inco term.

In fact, inco terms are an abbreviation of [International Commercial Terms] published by the International Chamber of Commerce. It is a set of rules for the interpretation of the most commonly used trade terms in foreign trade which parties to a contract can agree upon to avoid misunderstandings, disputes and litigation.

thanks

G. Lakshmipathi

[Former Member]

Incoterms are set as Standard by Government. We use the appropriate Incoterm, as per requirement.

Regards,

Rajesh Banka